Andrea has prepared the following list of statements about corporations.Identify each statement as true or false.

1. Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership. True

2. Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation. False

3. When a corporation is formed, organization costs are recorded as an asset. = False

4. Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation. True

5. The number of issued shares is always greater than or equal to the number of authorized shares. False

6. A journal entry is required for the authorization of capital stock. False